Under the Efficient Markets Hypothesis,for News About a Company's Prospects

question 8

Multiple Choice

Under the efficient markets hypothesis,for news about a company's prospects to have a large impact on the price of the company's stock,the news must

• A) have an impact on the company's profitability in the short term.
• B) have an impact on the company's profitability in the long term.
• C) significantly increase the likelihood that the company will go bankrupt.
• D) significantly reduce the liquidity of the company's stock.

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Definitions:

Socially Constructed

An idea or notion that is created and developed by society rather than naturally existing.

Generalized Other

An abstract composite of social roles and social expectations.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or cultural group, essential for integration and functioning within their community.

Annette Lareau

A sociologist known for her work on social class influences on parenting styles and their impacts on children's lives.